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Securities & Financial News to Note : Bulletin - February 6, 2012

This bulletin is published every other week on Monday and is disseminated via electronic mail. It features brief summaries of current legal developments in the SEC/corporate, accounting/tax, banking, litigation, as well as other business and financial service areas when appropriate.

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Labor, Employment and Benefits: Alert - February 6, 2012

The U.S. Supreme Court recently denied an employer’s request for review of a decision by the U.S. Court of Appeals for the Eighth Circuit, which held that tipped employees spending more than 20 percent of their time performing related but non-tipped duties must be paid the full minimum wage for that time, without the tip credit.

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Articles & White Papers

Ponzi Schemes and Clawbacks: Investors Pay Twice for the Crimes of Others
 

Insights Magazine

July 1, 2009
 
Richard E. Lear- Washington
John J. Monaghan- Boston
Diane N. Rallis- Boston

The pain felt by duped investors in Ponzi schemes may only be the beginning. When a scheme collapses, the perpetrator is naturally the first stop in the effort to recapture the misdirected investor money – but it's not the only stop. Bankruptcy Code provisions known as "clawbacks" allow bankruptcy trustees to seek the return of funds distributed to investors, even from those who were fortunate enough to have turned a profit or redeemed their investments before the schemes unraveled. This article explains the clawback rules and the two provisions they rely on: the preferential transfer theory and the fraudulent transfer theory. To read the full article, please click on the link below.

READ: Ponzi Schemes and Clawbacks: Investors Pay Twice for the Crimes of Others

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